‘Good faith just doesn’t cut it’

NewPage pensioners billed $5M

HALIFAX — NewPage pensioners have taken it on the chin because nobody is looking out for them, Inverness MLA Allan MacMaster told a legislative committee Wednesday.

“Is there anybody they can look to as an advocate?” MacMaster asked Nancy MacNeill Smith of the province’s pension regulation division. “There just doesn’t seem to be anybody out there protecting these people.”

NewPage retirees received a bill for $5 million because Aon Canada, the former administrator of their defined benefit pension plan, made some decisions that were not in their best interest, he said.

MacNeill Smith said the province relies on good faith that companies and their pension fund administrators will act in the best interests of plan members.

“Even though she’s saying it’s not her responsibility, and legally it may not be, but from a moral point of view, somebody should be representing us,” said NewPage retiree Blair Samson.

MacMaster said defined benefit pension plans should come with a greater sense of security for members and there should be some oversight.

“Good faith just doesn’t cut it,” he said.

MacMaster also questioned MacNeill Smith about a mail-in vote that increased solvency relief from five to 10 years. Members had 30 days to respond by mail and this coincided with a postal strike, said Samson.

MacMaster wondered who counted the ballots and if anyone from the pension regulation division acted as scrutineers.

MacNeill Smith said her office was not involved.

“That’s like someone running in the election, counting the votes and declaring themselves the winner,” MacMaster said. “It amazes me that it wouldn’t be more closely monitored by your office.”

MacMaster said the letter advising members of the vote was misleading because it said it was not going to have any effect on benefits.

How can you work in a senior executive position observing and administering policies and practices day in and day out that are clearly poorly designed and just look the other way - it boggles my mind. Anyway - this is what I call corporate fraud - notify them of your intention to file a class action suit against the company - that will get their attention - it may take years but this is a made to order case!